Question: 3. A company is considering two projects, Project X and Project Y. Project X has an initial investment of $100,000 and is expected to generate

3. A company is considering two projects, Project X and Project Y. Project X has an initial investment of $100,000 and is expected to generate cash inflows of $20,000 per year for 8 years. Project Y has an initial investment of $150,000 and is expected to generate cash inflows of $30,000 per year for 6 years. Which project should the company choose based on the profitability index (PI) method?

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